Trading options around corporate earnings is one of the more aggressive trading strategies that exists. Sometimes, there can be a great amount of uncertainty in how a company will frame future forecasts. Surprise earnings data can trigger a bullish or bearish stock price change that can create an erratic options trading environment that is tough for any trader to handle. When trading earnings, it is important to understand that there can be a volatility change component and a stock change component.
In this recorded webinar, we covered how implied volatility rises and collapses around earnings. We also discussed a few common theories and trading strategies that pro traders employ when trading around corporate earnings.